India: Wheat trades down on short selling

Wheat futures traded bearish on Wednesday. The expiry of the contract had the negative impact on the prices as the April expiry is expected to close at the spot prices.
The prices are pressurized by lower quality of the crop which is keeping the buyers away from the spot markets.
The increase in the prices, volume and open interest are decreasing indicates that the prices might remain positive for the day. The basis of the wheat prices is decreasing which is expected to continue for the day.
Outlook Wheat futures are projected to remain down side in the initial hours while the recovery towards the closing cannot be ruled out. The spot market activities are affected by the rains across the Punjab and Haryana regions.
The post harvest operation of the crop which was harvested is also affected by the cloudy weather conditions. The drop in the FCI procurement compared to last year by 76% is creating concerns about the yield levels during the current year.
According to the third advance estimates the production of wheat is expected to be around 84.2 million tons which more seems like irrelevant to the current scenario.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Wheat-trades-down-on-short-selling-23344.html)